Barton under Needwood leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Barton under Needwood enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Barton under Needwood you would be well advised to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Barton under Needwood with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you enhanced control over the value of your Barton under Needwood leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Seth, started to get near to the eighty-year mark with the lease on his garden flat in Barton under Needwood. Having purchased his property two decades ago, the length of the lease was of little concern. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Seth arranged for a lease extension just under the wire in July. Seth and the freeholder via the management company subsequently settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the amount would have gone up by a minimum £1,125.
Mr and Mrs. D Young took over the lease of a one bedroom apartment in Barton under Needwood in October 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Identical properties in Barton under Needwood with a long lease were valued around £208,600. The average amount of ground rent was £60 collected monthly. The lease expiry date was on 15 March 2083. Considering the 57 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
In 2010 we were e-mailed by Mr Hugo Lefèvre who, having completed a garden flat in Barton under Needwood in October 2003. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative homes in Barton under Needwood with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded on 1 September 2103. Given that there were 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.